Wheat steadies as strong US yield outlook offsets Russian losses
CANBERRA, May 16 (Reuters) -Chicago wheat futures held steady on Thursday as hopes for strong U.S. yields took the edge off worries about crop losses in top exporter Russia that drove prices to 10-month highs this week.
Soybean futures inched up as concerns over flooding in Brazil offset data showing lower demand for beans from U.S. soy processors. Corn also rose slightly despite drier weather forecast in the U.S. Midwest that is favourable for planting.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was almost unchanged at $6.66 a bushel at 0050 GMT after rising as high as $6.97 in volatile trade on Wednesday.
* CBOT soybeans Sv1 were up 0.2% at $12.15-3/4 a bushel and corn Cv1 climbed 0.3% to $4.63-3/4 a bushel.
* All three contracts hit their lowest levels since 2020 earlier this year but regained some ground as supply outlooks tightened. Soybeans are up around 7.5% from this year's lows, with corn up around 14% and wheat up around 26%.
* Record exports of wheat from Russia had held prices down but consultancy Sovecon cut its forecast for Russia's 2024 harvest to 85.7 million metric tons from 93 million tons just a few weeks ago due to dry weather and frosts.
* However, in the United States, the first results of the Wheat Quality Council's tour in Kansas projected an average yield of 49.9 bushels an acre for hard red winter wheat, the highest in three years.
* Argentina's Rosario grains exchange, meanwhile, expressed optimism about the 2024/25 wheat crop, citing improved soil conditions at the start of planting and expected rains in October and November.
* For soybeans, April's U.S. crush plunged in April to a seven-month low, below all trade estimates, according to data from the National Oilseed Processors Association (NOPA).
* In corn, France's farm ministry said the country's grain maize area will jump by nearly 10% this year as farmers shift to spring varieties after heavy rain hit winter crops.
* Cold weather in Argentina in the coming weeks should benefit corn growers battling a major insect infestation, the Buenos Aires Grains Exchange said.
* Commodity funds were net sellers of CBOT wheat, corn and soybeans on Wednesday, traders said. Speculators have sharply reduced their net short position in all three crops in recent weeks, helping lift prices.
MARKETS NEWS
* Global stock markets rose to record highs while U.S. Treasury yields and the U.S. dollar fell on Wednesday as data showed U.S. consumer prices rose less than expected in April, suggesting inflation has resumed a downward trend. MKTS/GLOB
Reporting by Peter Hobson; Editing by Janane Venkatraman
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